Adjusted benefits

Dear Atty. Kathy,

My father complained to his then employer, C, because C has not been giving the adjusted computation of his benefits, despite the mandated salary increases for the past years. During negotiations with the HR Department, it was agreed that my father will resign from C and that at the same time, C guaranteed that my father will get all his benefits adjustments as part of his final pay. However, when my father checked the final pay that was credited to his bank account, he discovered that the amount was only for the final pay, and did not include the benefits adjustments. Aside from claiming the lacking benefits, can my father still claim illegal dismissal, since he was tricked into resigning on the premise that all benefits adjustments will be paid?

Amram

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Dear Amram,

As ruled by the Supreme Court, constructive dismissal is defined as quitting or cessation of work because continued employment is rendered impossible, unreasonable or unlikely; when there is a demotion in rank or a diminution or pay and other benefits; when there is an act of clear discrimination, insensibility, or disdain by an employer which becomes so unbearable on the part of the employee that it could foreclose any choice by him except to forego his continued employment; and / or when here is involuntary resignation due to the harsh, hostile, and unfavorable conditions set by the employer.

To determine whether or not there is constructive dismissal, the test is if a reasonable person in the employee’s position would have felt compelled to give up his employment/position under the circumstances. Further, while the employer may put up the defense that the employee resigned, the employee must still prove that the employee indeed voluntarily resigned, with the intention of giving up his / her office / position, coupled with an act of relinquishment.

Based solely on your narration, your father agreed that he will resign since at the same time, C will give him all his benefits adjustments as part of his final pay. However, C did not give your father his benefits adjustments even when the latter resigned.

The foregoing show that your father’s resignation was obtained through deceit and/or fraud, since C misrepresented that your father will get his benefits adjustments together with his final pay after he resigns. In effect, it appears that C attempted to disguise your father’s dismissal as a voluntary resignation. Accordingly, case law dictates that such a resignation obtained through deceit and/or fraud is contrary to due process and fair play, and is clearly a case of constructive dismissal.

Thus, subject to other supervening circumstances, your father may have a cause of action for constructive dismissal.

(Domingo Naldo Jr., et al. vs Corporate Protection Services, Phils. Inc., et al., G.R. No. 243139, 3 April 2024)

Atty. Kathy Larios